8th Pay Commission: Central government employees face an increased risk of significant financial losses if the 8th Central Pay Commission (CPC) gets delayed beyond January 2026.
Arrears get paid on revised basic pay and dearness allowance, but house rent allowance (HRA) arrears are not paid. This could easily translate to losses of up to Rs 3.8 lakh over two years. Employees in metro cities are likely to face the biggest impact because of higher HRA rates.
When Will 8th Pay Commission Be Implemented?
The 7th Pay Commission is scheduled to expire on December 31, 2025. The 8th Commission was expected to start on January 1, 2026. However, many industry experts believe that actual implementation may get delayed by 18-24 months.
Dearness Allowance gets merged into the basic pay when a new pay commission comes into force. Employees receive arrears on revised basic salary on the pay commission’s implementation.
An employee with a basic pay of around Rs 76,500 could lose up to Rs 3.8 lakh in unpaid HRA over a delay period of 2 years. Even employees at lower pay levels can face losses running into several lakh rupees.
